AXA Real Estate Investment Managers (“AXA Real Estate”), the leading real estate fund and asset manager in Europe* with €39.4 billion of assets under management as at March 2011, has sold the Solent Gate Industrial Estate in Fareham for £3.82m, on behalf of a client. AXA Real Estate was advised by the South Coast team of national commercial property consultancy, Lambert Smith Hampton (LSH).
The 50,000 sq ft scheme has been sold to Threadneedle Property Unit Trust, following a quick exchange and completion. The deal completed at a price of £3.82m, equating to a net initial yield of just under 8.2%. Jones Lang LaSalle acted on behalf of Threadneedle.
Ian Pollard of AXA Real Estate said: “The sale of this asset follows our intensive asset management plan, which has included renegotiating a number of leases and letting the final unit of the scheme. This sale crystallises the value we have created and allows us to look for new investments where we can add value for our client.”
Jerry Vigus, Director in LSH’s Capital Markets team, added: “LSH has been involved in letting the units on the estate since it was built in 2000, as well as being proactively involved in asset management through lease renewals and rent reviews. The sale of the scheme sees us go full circle.”
Solent Gate is located off Speedfields Park in Fareham and is adjacent to ASDA, Wickes, Hendy Ford and Vauxhall. The scheme comprises seven units totalling just over 50,000 sq ft across two terraces. Rich Products Ltd, a world leading bakery business with its head office in America, occupies 45,000 sq ft on the estate as its European headquarters. City Plumbing Supplies, part of Travis Perkins, occupies Unit 1 which totals 5,000 sq ft.
Jerry added: “We were instructed to market the investment to a limited number of parties that we knew would have an interest, so embarked on a finely targeted marketing campaign. During this process we received expressions of interest from a mixture of institutions, property companies and local cash-rich investors. After a short marketing period, we secured the deal with Threadneedle, which was prepared to enter a 10 day exchange and completion.”
